Expanding scale and scope of large companies

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1. Can the expanding scale and scope of large companies between the late 19th century and the 1970s be explained by factors which reduced the administrative costs of firms relative to the transaction costs of markets?

2. A large proportion of major corporations outsource their IT functions to specialist suppliers of IT services, such as IBM, HP, Accenture, and Capgemini. What benefits do corporations derive from outsourcing their IT requirements? What transaction costs might arise from these arrangements?

3. Strategy Capsule 10.2 compares alternative strategies for exploiting children's characters. Hello Kitty is owned by the Japanese company Sanrio Co. Ltd. and is exploited throughout the world through licensing contracts with toy makers, jewelry companies, fashion companies, restaurants, theme parks, retail stores, and many other types of businesses. Could Hello Kitty be exploited more effectively by a vertically-integrated entertainment company, such as Disney?

Reference no: EM132911035

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